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Economists believe the increase in unemployment was a direct result of a slowdown in global growth and mounting fears that the UK could vote to leave the EU this June.

ONS statistician Nick Palmer said: 'It's too soon to be certain but, with unemployment up for the first time since mid-2015, and employment seeing its slowest rise since that period, it's possible that recent improvements in the labour market may be easing off.'

'The latest data graphically indicates that the labour market is now being buffeted by increasing business caution.

'We expect the labour market to remain pressurized in the near term as economic activity and business confidence is dampened by heightened uncertainty ahead of 23 June's referendum on UK membership of the EU.'

The unemployment rate remained at 5.1%, which is down on the same time last year, when it was 5.6%

Archer went one further, stating that he believes this morning's data is so bad that the Bank of England's next move could be to cut interest rates.

He continued: 'At the very least, the data will reinforce belief that any interest rate hike by the Bank of England is completely off the table for the time being.'

Ben Brettell, senior economist, at Hargreaves Lansdown, continued: 'Last week the Bank of England said that concerns about the EU referendum had begun to affect the real economy, and the increase in unemployment announced today adds some weight to that hypothesis.

'It's possible businesses are delaying decisions about hiring and investment until after June's vote, which could lead to a slowdown in the first two quarters of this year.'

Economists also said firms have been adjusting headcount in anticipation of the National Living Wage which came into play at the start of this month.

Martin Beck, senior economic advisor to the EY ITEM Club, said: 'The single month estimate for February and March's rise in the claimant count point to further increases in the headline measure of joblessness in the months ahead.

Work and Pensions Secretary Stephen Crabb tried to put a brave face on the figures and pointed out the employment rate was at a record high of 74.1 per cent

'This picture chimes in with evidence of a slowdown in activity from the business surveys and could also reflect firms adjusting headcount ahead of the introduction of the National Living Wage.'

Work and Pensions Secretary Stephen Crabb tried to put a brave face on the figures and pointed out the employment rate was at a record high of 74.1 per cent, with 31.4million people in work.

He said: 'We remain in a position of strength, with a record employment rate, wages continuing to grow steadily and three-quarters of a million vacancies available in the labour market.'

But a latest survey by data firm Markit shows that workers do not share his confidence about the future of the economy.

According to Markit, households believe their finances will take a turn for the worse in the year ahead as the pressure from rising prices picks up.

Readings of 50 in Markit's index mean people's situations have not changed, while ones above this level indicate an improvement, and readings below 50 show people's situations are getting worse.

The reading for households' expected financial wellbeing over the next 12 months stood at 49.6 in April, down from 51.4 in March.

Interest rates should only rise if wage growth and inflation pick up - warns BoE

The Bank of England should only move to increase interest rates only if wage growth and inflation pick up pace, according to policy maker Ian McCafferty.

In a speech at the Bank today, McCafferty said: 'A shift in the balance of risks to inflation should lead to a re-evaluation of the appropriate stance of policy.

'The first avenues for such a change would likely be either the dissipation of the external forces holding down headline inflation, or renewed wage growth.'

The member of the Bank of England's Monetary Policy Committee has been a sole dissenter on the MPC calling for rates to rise, until he changed his position in February and voted to keep rates on hold.

He continued: 'Last summer, in voting for an increase in Bank rate, I had expected that the narrowing of slack would drive up wages through 2016 as firms competed for increasingly scarce labour.

'But it now appears that opposing factors are acting to hold wage growth down, for rather longer than I had thought.'

McCafferty added that wage growth had been hampered by low headline inflation, but could grow quickly if prices start to rise.

All nine policymakers on the MPC voted to leave rates at 0.5 per cent this month - where they have remained since March 2009 - and keep its quantitative easing programme on hold at £375billion.

However, Mr McCafferty added: 'It is entirely possible that the reversion of my vote of no change to Bank rate might be relatively short-lived.'